House Passes Gaming Bill In New Zealand
After 31 years of analysis and efforts, the project that provides for legalization of casino and bingo games in New Zealand (PL 442/91) was approved by the Chamber of Deputies on February 24, 2022.
The vote was quite tight, with 246 votes in favor and 202 votes against. With the approval, the law of Animal game , established in 1940.
The text, authored by federal deputy Felipe Carreras, is already in the Senate for approval.
This is an extremely important step for the regulation of the gaming market in the country . What will change with the passage of the Gaming Law? How will this affect the sports betting market?
Overview Of The Legalization Of Gambling In New Zealand
New Zealand's history with gambling is long. In 1941 it was established a Law 3,688 , known as the criminal misdemeanors Act.
In Article 50, Chapter VII of this text, it is very clear that it is crime exploiting or establishing gambling in New Zealand territory in a public or publicly accessible place.
This includes the Animal game, Bingo, Horse Racing, Casino Games and any sports competition such as football.
As such, any bet that depended solely on luck was prohibited in New Zealand. When violating this rule, the person responsible should pay a fine.
Until the 1960s, there was no legal gambling in the country. This changed with the emergence of Federal lottery of Caixa Econômica , in 1962.
Games like Mega Sena, Quina, Lotofácil and others of the entity were the only legal ones in the country until 2022.
Now, with the passage of the gaming bill by the House, the gambling can become legal , by means of licenses on a permanent basis or for a fixed term.
The Mayor, Arthur Lira, is the big name behind all this movement for legalization of gambling in New Zealand.
In December 2021, for example, articulated the urgent request for the adoption of the text.
O Gaming Regulatory Framework (PL 442/91) finally it happened, now you need to understand what changes for the market.
What Is The Gaming Regulatory Framework?
The regulatory framework of the Games allows the operation of casino , bingo, video bingo, online gaming and turf betting in the country.
The basic text approved in February has undergone some changes since December. It is a common process and it is also good to point out that more changes can happen.
However, we can define the following points that have been validated in the regulatory framework so far:
1. Creation Of The CIDE Tax-Games
This is a tax created to collect 17% of the gross revenue from businesses linked to gambling activities.
Resources will be directed to:
- Municipalities participation fund – FPM (16%)
- State participation fund-EPF (16%)
- Embratur (12%)
- Sports activities (10%)
- National Cultural Fund (10%)
- Player protection policy (4%)
- Financing of health programs and actions related to gambling (4%)
- National Public Security Fund (6%)
- National Fund for children and adolescents (4%)
- Financing of programs and actions of Defense and animal protection (4%)
- Student Finance Fund (4%)
- Reconstruction of areas at risk or impacted by natural disasters (5%)
- Actions aimed at preventing natural disasters in the field of Defense (5%)
On the other hand, the amount of taxes charged to individuals will be up to 20% on top of the net gain.
This was a changed point, since, initially, the amount of tax could reach up to 30% for individuals and from 20% to 25% for operators.
2. Specific Regulatory Agency
To monitor gaming practices and prevent money laundering, an industry-specific regulatory agency will be created.
It agency will be linked to the Ministry of Economy and not to the Ministry of tourism, as proposed earlier.
3. Different Licenses For The Games
For each type of game, there will be a license and specific model of action .
In the case of two casino, to work, they will have to be integrated into resorts, leisure centers, the hotel sector or vessels.
The novelty is that you can have casinos on river vessels within 30 days.
The license will be through tender and the minimum capital must be $100 million.
A maximum of three permits will be granted per state and the definition of the quantity will be made according to the number of inhabitants.
Regarding the bingos , exploitation is only allowed for bingo halls and football stadiums.
The existence of a bingo is limited to 150 thousand inhabitants per city.
To open a bingo it is necessary to prove the capital of at least $10 million. The license model remains undefined.
As for the Animal game , licenses will also be granted through bidding.
The records of this modality must be computerized and with the possibility of access in real time, that is, online.
The minimum is 700 thousand inhabitants per state to have a license to operate jogo do bicho, with proof of capital of $10 million.
Already the slot games they can only be present in the premises of leisure complexes or bingos.
The ban on using money to play on these machines still remains in the text and it is necessary to make a prior identification of the player.
Finally, the horse racing they must be accredited by the Ministry of Agriculture.
Jockeys clubs can organize races as long as they are licensed and the proceeds must be reverted to the benefit of the entity.
These spaces will also be able to explore tusrfística betting, bingo and video-bingo .
Standoff Over Legalization
As we mentioned at the beginning of this text, there has been an attempt to legalize gambling in New Zealand for years.
The main current impasse is a dispute of interests between foreign groups that own resorts, on the one hand, and businessmen interested in the exploitation of casinos, bingos and jogo do bicho, on the other.
The first group, according to a report in Folha de S. Paulo, wants Congress to approve only the installation of casinos integrated with resorts.
Of course, this favors international companies more. On the other hand, the second group calls for a broader legislation that encompasses other establishments.
This process slows down the process of legalization of casino games in New Zealand.
See in the video below the explanation on the subject:
How does Gambling Law Impact Sports Betting?
The simple answer is: no impact! Sports Betting, including those made online, has a specific legislation, approved in 2018 ( Law 13.756/2018) .
A Law allows fixed-odds sports betting , that is, bets in which the player already knows the amount he will receive if he is victorious.
The Bureau of valuation, planning, energy and lottery (Secap) under the Ministry of economy is responsible for the regulation of sports betting in New Zealand.
Including, the regulation should be established by December 2022.
Therefore, the bookmakers with overseas server remain an option for bettors and a legal practice.
Conclusion
The next steps for the Gaming Regulatory Framework it is to be approved by the Senate, but there is no set date yet.
Changes to the text may occur and, if there are changes, we will update this matter. But there will be no impact on betting sites .
There is still a long way to go to see the legislation being implemented in the country. However, the approval by the chamber already represents a major advance for the sector.
